Farantouris: Index-linked Adjustment of the Tax Scale Needed

SYRIZA-PS MEP Nikolas Farantouris has called on the government to implement an index-linked adjustment of the tax scale. He argued that wage increases that merely cover inflation push taxpayers into higher tax brackets.

Speaking on ERT, Mr. Farantouris emphasized that tax brackets remain frozen, resulting in employees paying more taxes without becoming wealthier.

According to data from the Independent Authority for Public Revenue (AADE) and the Ministry of National Economy and Finance, state budget tax revenues for 2024 amounted to €68.787 billion, exceeding the target by €5.8 billion (+9.36%).

The breakdown of tax revenues for 2024 by tax category is as follows:

1. Income Tax: €23.991 billion (34.9%)
2. Value Added Tax (VAT): €18.687 billion (27.2%)
3. Special Consumption Taxes (EFK): €7.252 billion (10.5%)
4. ENFIA (Property Tax): €2.467 billion (3.6%)
5. Property Transfer Taxes: €342 million (0.5%)
6. Inheritance, Parental Gifts, and Donation Taxes: €170 million

Mr. Farantouris concluded that this imbalance requires immediate corrective measures, proposing an index-linked adjustment of the tax scale.